Fund Manager Talk | Bank stocks will deliver above average performance for next few years: Chandraprakash Padiyar
Stating that financials as a sector and banks specifically offer better risk reward opportunity, Chandraprakash Padiyar, Senior Fund Manager, Tata Asset Management, says given the positive regulatory environment for banks in terms of early warning, asset quality will remain strong over cycle enabling higher growth in credit and ROE, leading to better valuations.
«We see ingredients in place for a positive next few years for the market with the largecap segment doing better than midcap and smallcaps,» he says. Edited excerpts from a chat:
What is your outlook on Samvat 2081? Do you think Nifty would give double-digit returns in the new year as well?
We believe the Indian economy is likely to continue to grow at a steady pace led by corporate capex (specially energy transition), real estate and bank credit picking up. Corporate earnings growth is likely to be better given the base for 2HFY25 and FY26. We also expect earnings delivery by banks to improve for FY26. Valuations for the largecap part of the market remain reasonable whereas midcap and smallcap segments are on the higher side. We see ingredients in place for a positive next few years for the market with the largecap segment doing better than midcap and smallcaps.
As market cycles change, winners keep changing. Given the key events lined up — RBI rate cut cycle (which will eventually begin in next few months), US presidential elections, etc — for the next one year, where do you think the puck is going to be in Samvat 2081?
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